Manager’s Depreciation Calculation Worksheet currently calculates depreciation using the declining balance method. Depreciation is calculated as a percentage of book value. If this is not your depreciation method, you cannot use this worksheet. Capabilities for other depreciation methods, including straight-line, will be added in the future.
Manager can calculate depreciation automatically and enter depreciation for an accounting period for all fixed assets at once. To include a fixed asset in this process, its annual depreciation rate must be entered on the fixed asset form:
The annual depreciation rate can be entered when purchasing new fixed assets. Or it can be added by clicking Edit for a fixed asset in the Fixed Assets tab.
After you specify depreciation rates on all your active fixed assets, go to the Reports tab and click on Depreciation Calculation Worksheet, then on New Report:
Create a report covering the period for which you want to calculate depreciation for your fixed assets:
Fromdate will be prefilled with the current date. Change this to the first day of the accounting period for which you are calculating depreciation.
Untildate will also be prefilled with the current date. Change this to the last day of the accounting period for which you are calculating depreciation.
Descriptionof the depreciation being calculated.
Click Create. The report will calculate depreciation amount for each fixed asset.
Before creating a new report, all prior depreciation must be calculated and entered for all fixed assets. The calculation worksheet bases calculations on book values of fixed assets on the first day of the defined period. If these are incorrect, both current and future depreciation calculations will be wrong. (If depreciation for prior accounting period has not been entered, you can calculate and enter it by creating reports with earlier date ranges. However, these must be created in chronological order.
Brilliant Industries has two fixed assets with different annual depreciation rates. Based on the depreciation rates entered for each, the Depreciation Calculation Worksheet produces the following results for 2018:
If you are satisfied with calculated figures, click on New Depreciation Entry on the report:
This will copy the figures from the report into an actual transaction in the Depreciation Entries tab. There, you can edit the figures if needed. The Depreciation Calculation Worksheet is just a worksheet to give you good starting point so you don’t have to calculate all the figures from scratch.
Brilliant Industries reviews the worksheet from the previous example, confirming the accuracy of the numbers. It clicks on New Depreciation Entry to generate a depreciation entry for all fixed assets for the 2018 accounting period:
Since Brilliant does not assign fixed assets to tracking codes, it leaves those fields blank. It could, however, have chosen tracking codes if it desired.
For subsequent accounting periods, the book values determined by Manager after applying the calculated depreciation will be used as the starting point for the next Depreciation Calculation Worksheet.
For the following year, Brilliant Industries generates another Depreciation Calculation Worksheet. Note the different book values and calculated results:
When fixed assets are disposed part way through an accounting period, Manager makes appropriate adjustments on the worksheet.
Brilliant Industries packing machine failed at the end of August 2019 and was scrapped. The fixed asset was disposed. As a result, only 243 days worth of depreciation is calculated:
If your depreciation scheme allows only full or half accounting periods to determine depreciation, adjust your disposal dates to the end or mid-point of the period.